Lyondellbasell Industries Nv Stock Beneish M Score

LYB Stock  USD 82.80  0.32  0.39%   
This module uses fundamental data of LyondellBasell Industries to approximate the value of its Beneish M Score. LyondellBasell Industries M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out LyondellBasell Industries Piotroski F Score and LyondellBasell Industries Altman Z Score analysis.
  
At present, LyondellBasell Industries' Short Term Debt is projected to decrease significantly based on the last few years of reporting. The current year's Net Debt To EBITDA is expected to grow to 2.14, whereas Short and Long Term Debt Total is forecasted to decline to about 11.3 B. At present, LyondellBasell Industries' Dividend Yield is projected to slightly decrease based on the last few years of reporting. The current year's Book Value Per Share is expected to grow to 42.19, whereas Price To Sales Ratio is forecasted to decline to 0.62.
At this time, it appears that LyondellBasell Industries is an unlikely manipulator. The earnings manipulation may begin if LyondellBasell Industries' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by LyondellBasell Industries executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of LyondellBasell Industries' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.43
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.95

Focus
Asset Quality

1.57

Focus
Expense Coverage

0.71

Focus
Gross Margin Strengs

0.86

Focus
Accruals Factor

0.71

Focus
Depreciation Resistance

0.76

Focus
Net Sales Growth

1.04

Focus
Financial Leverage Condition

1.06

Focus

LyondellBasell Industries Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if LyondellBasell Industries' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables3.9 BB
Fairly Down
Slightly volatile
Total Revenue42.8 B41.1 B
Sufficiently Up
Pretty Stable
Total Assets31.4 B37 B
Fairly Down
Slightly volatile
Total Current Assets12.3 B13.2 B
Notably Down
Slightly volatile
Non Current Assets Total19.1 B23.8 B
Significantly Down
Slightly volatile
Property Plant Equipment12.9 B19.7 B
Way Down
Slightly volatile
Depreciation And Amortization1.4 B1.5 B
Fairly Down
Slightly volatile
Selling General Administrative1.2 B1.6 B
Way Down
Slightly volatile
Total Current Liabilities5.8 B7.2 B
Significantly Down
Slightly volatile
Non Current Liabilities Total14.9 B16.8 B
Fairly Down
Slightly volatile
Net Debt9.4 B9.6 B
Fairly Down
Pretty Stable
Short Term Debt1.9 B1.3 B
Way Up
Slightly volatile
Long Term Debt8.2 B10.3 B
Significantly Down
Slightly volatile
Operating IncomeB3.1 B
Significantly Up
Pretty Stable
Total Cash From Operating Activities4.6 B4.9 B
Significantly Down
Slightly volatile
Short Term Investments14.2 M15 M
Notably Down
Pretty Stable
Long Term InvestmentsB3.9 B
Significantly Down
Slightly volatile
Gross Profit Margin0.110.1279
Fairly Down
Very volatile

LyondellBasell Industries Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between LyondellBasell Industries' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards LyondellBasell Industries in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find LyondellBasell Industries' degree of accounting gimmicks and manipulations.

About LyondellBasell Industries Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Other Operating Expenses

38.39 Billion

At present, LyondellBasell Industries' Other Operating Expenses is projected to increase significantly based on the last few years of reporting.

LyondellBasell Industries Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as LyondellBasell Industries. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables3.5B3.4B4.8B3.6B4.0B3.9B
Total Revenue34.7B27.8B46.2B50.5B41.1B42.8B
Total Assets30.4B35.4B36.7B36.4B37B31.4B
Total Current Assets9.5B11.6B12.2B11.8B13.2B12.3B
Net Debt12.7B15.7B12.1B11.0B9.6B9.4B
Short Term Debt721M981M704M1.1B1.3B1.9B
Long Term Debt11.6B15.3B11.2B10.5B10.3B8.2B
Operating Income4.1B2.5B6.8B5.1B3.1B4.0B
Investments930M(2.6B)575M(2.0B)(1.7B)(1.6B)

LyondellBasell Industries ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, LyondellBasell Industries' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to LyondellBasell Industries' managers, analysts, and investors.
Environmental
Governance
Social

About LyondellBasell Industries Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze LyondellBasell Industries NV's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of LyondellBasell Industries using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of LyondellBasell Industries NV based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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When determining whether LyondellBasell Industries offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of LyondellBasell Industries' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Lyondellbasell Industries Nv Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lyondellbasell Industries Nv Stock:
Check out LyondellBasell Industries Piotroski F Score and LyondellBasell Industries Altman Z Score analysis.
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Is Commodity Chemicals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of LyondellBasell Industries. If investors know LyondellBasell will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about LyondellBasell Industries listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.24)
Dividend Share
5.18
Earnings Share
6.59
Revenue Per Share
125.335
Quarterly Revenue Growth
(0.03)
The market value of LyondellBasell Industries is measured differently than its book value, which is the value of LyondellBasell that is recorded on the company's balance sheet. Investors also form their own opinion of LyondellBasell Industries' value that differs from its market value or its book value, called intrinsic value, which is LyondellBasell Industries' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because LyondellBasell Industries' market value can be influenced by many factors that don't directly affect LyondellBasell Industries' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between LyondellBasell Industries' value and its price as these two are different measures arrived at by different means. Investors typically determine if LyondellBasell Industries is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LyondellBasell Industries' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.